Why Interest Calculation in SBI Max Gain varies on month to month basis ?

POSTED BY Reji m ON April 28, 2014 7:16 pm COMMENTS (3)

Does the interest amount charged vary from month to month? From my sbi max account Rs 40,00,000/ was issued to the builder as on 20 Dec 2013.  After this no payment is give to the builder ( next payment is another 2 months away). When I checked the interest outgo, each month it varies! Why is it happening?

  • Jan 14 I paid   37,106.00 as interest
  • Fed 14: 33,299.00
  • Mar 14:  36,526

Is it calculation error?

 

3 replies on this article “Why Interest Calculation in SBI Max Gain varies on month to month basis ?”

  1. ashalanshu says:
    April 30, 2014 at 1:30 am

    Dear Viren, aptly answered by you here and by Roshan in old Max Gain thread, hence not adding anything extra. 🙂

    Thanks

    Ashal

    Reply
  2. Viren Phansalkar says:
    April 29, 2014 at 9:34 am

    The interest is calculated on daily basis. Hence, if the number of days are less in a month, the interest charged would be less. Therefore, the interest charged in the month of february is less than the interest charged in month of january or march.
    Next, since the interest charged was less in month of feb, the extra amount is routed to OD account. Due to this amount in OD account, interest charged is marginally less in month of march as compared to january.
    This was my take. MaxGain expert will give his views shortly 🙂

    Reply
  3. Raja says:
    April 29, 2014 at 9:32 am

    Interest would be calculated on daily basis instead of monthly basis. So if the month has more days, the interest will be slightly higher than months which have less days

    Reply

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